> For the complete documentation index, see [llms.txt](https://recovery-republic.gitbook.io/recovery-republic-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://recovery-republic.gitbook.io/recovery-republic-docs/recovery-compensation-plan.md).

# Recovery Compensation Plan

## 💼 Recovery Compensation Plan

**Official Implementation Date:** February 1, 2026

#### **Eligibility**

All Recovery Licenses with an 80/20 profit-sharing structure are eligible to participate in the Recovery Compensation Plan.

### 📘 Overview

The **Recovery Compensation Plan** is designed to reward participants based on their **individual profit generation**, while maintaining long-term sustainability through a structured **80/20 withdrawal model**.

Participants earn profits from their own active Recovery balances. When profits are withdrawn, a portion of the company’s share is redistributed across **five referral levels**, creating a fair and balanced compensation structure.

This model ensures:

* Clear ownership of individual earnings
* Sustainable referral rewards
* Long-term ecosystem stability

### ⚙️ How the Compensation Plan Works

To participate in the compensation plan, a user must hold:

* An **active Recovery License**
* An **active Recovery balance**

Earnings are generated based on the user’s **own active balance and system performance**.\
Referral rewards are funded exclusively from the company’s 20% allocation at withdrawal.

### 🔁 Profit Generation

* Each participant generates **personal profit** from their active Recovery balance.
* These profits accumulate in the account and remain available until a withdrawal is requested.
* Referral activity does **not** affect how personal profit is calculated.

### 🧩 Level-Based Reward Structure

From the **20% company allocation**, a portion is redistributed as referral compensation across **five levels**.

| Level   | Reward Percentage |
| ------- | ----------------- |
| Level 1 | 2%                |
| Level 2 | 1%                |
| Level 3 | 1%                |
| Level 4 | 0.5%              |
| Level 5 | 0.5%              |

➡️ **Total distributed to levels:** **5%**\
➡️ This 5% comes **entirely from the company’s 20%**, not from the user’s 80%.

### 💸 Withdrawal Model (80/20 Rule)

When a participant withdraws profit, the following rule applies:

* **80%** → Paid to the participant (withdrawable amount)
* **20%** → Allocated to the company

This split is applied **only at the time of withdrawal**, not during profit generation.

### 🧮 Simple Example

1. A participant earns **50** in profit.
2. The participant clicks **Withdraw: 50**.
3. The system applies the 80/20 rule:
   * **40** (80%) → Paid to the participant
   * **10** (20%) → Company share
4. From the company’s **10**:
   * **5%** is distributed across Levels 1–5
   * The remaining amount supports operations and sustainability

👉 The participant always receives **40**, regardless of referral payouts.

### 🎯 Purpose of the Compensation Plan

This structure is designed to:

* Reward **individual participation first**
* Enable **referral incentives without reducing user earnings**
* Prevent over-distribution
* Maintain a healthy and scalable system
* Align incentives between users and the platform

### 🌍 Sustainability & System Balance

By:

* separating personal earnings from referral payouts, and
* distributing referral rewards only from the company share,

the system ensures:

* predictable earnings
* controlled outflows
* long-term platform stability

### **How Rewards and Withdrawals Work (Simple Example)**

<figure><img src="/files/Iuebw0maqKXPtkoNFmm8" alt=""><figcaption></figcaption></figure>

### 🧭 Summary

* You earn from your own balance.
* When you withdraw, you receive **80%**.
* The remaining **20%** goes to the company, and from that amount, **5% is shared across five referral levels**.
* Your earnings are never reduced to pay others.


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